Lance Ziesemer, who was employed by Feltl & Company, during the time period in question was suspended by FINRA based on findings that he implemented a trading strategy and made unsuitable recommendations to customers to switch from unit investment trusts (UITs) to other UITs after holding the investments for a short period of time.
The findings stated that Ziesemer’s member firm’s procedures in place at the time, required Ziesemer to obtain a “switch letter” signed by the customer before selling any UIT and purchasing another UIT that carried a sales charge. Although all of the customers’ short-term UIT trades fell into that category, Ziesemer failed to obtain switch letters for any of them.
The short-term UIT transactions resulted in approximately $160,000 in combined net losses for the customers. In addition, the customers paid total commissions of $64,815 on the transactions of which Ziesemer received $38,889. The foregoing is all according to FINRA in a Letter of Acceptance, Waiver, and Consent in which Ziesemer neither admitted or denied the findings.
Mark C. Santi is an experienced Minnesota investor fraud attorney. If you have suffered losses from UIT switching please contact Mark for a free consultation.